BTC/USD: Bitcoin is more profitable than banks in 2020

Bitcoin turned out to be more profitable than shares of the world’s biggest banks, even despite the sharp collapse of the first cryptocurrency in the middle of March, according to the observations of Ryan Selkis from the cryptocurrency research company Messari. 

The "Pomp trade" having an epic year. “Long bitcoin, short the bankers” he tweeted recently (@twobitidiot)

For the sake of comparison, Bitcoin’s price gained over 36% since the beginning of the year, while the shares of banking giants experienced sharp declines. Thus, the shares of JPMorgan are 37% cheaper than in January, while Wells Fargo lost over 55% of its market value.

The selling pressure on the banking sector was caused by the economic consequences of the pandemic. The cryptocurrency experts believe that Bitcoin and gold will benefit from the crisis as they will serve as protective assets and a hedge against inflation.

BTC/USD: Technical picture

At the time of writing, BTC/USD is changing hands at $9,550, down 2.2% on a day-to-day basis. The first digital asset managed to recover from the intraday low of $9,462 and settle above $9,500, however, the upside momentum seems to be limited. The price needs to regain ground above $9,800 to get a chance for another try at $10,000.

On the downside, the critical support area is created by 38.2% Fibo retracement at $9,300. It is followed by a psychological $9,000. Considering the downward-looking RSI on the daily chart, BTC may be vulnerable to further losses within the current range.

BTC/USD daily chart